Photo by Robbie Jay Barratt - AMA/Getty Images
Photo by Robbie Jay Barratt - AMA/Getty Images
Many people are debating the potential punishment for Mark Walter, as the Chelsea co-owner continues to scramble around for money.
Mark Walter sits as a quiet co-owner at Chelsea, holding a roughly 12.8% minority stake through the BlueCo group alongside Todd Boehly. He’s always been a silent investor with essentially zero hands-on involvement in transfer strategy or day-to-day operations.
However, his wider financial empire is currently taking a massive hit. Federal prosecutors and the SEC are actively investigating his business network over allegations that his insurance entities secretly funneled over $20 billion into off-the-books, related-party loans.
To scramble for cash and ease regulatory pressure, Walter is rapidly dumping major sports assets, most notably selling his LA Lakers stake and opening talks to sell his Chelsea shares to majority owner Clearlake Capital.
But it could end up becoming a lot more serious as deadlines approach.
Todd Boehly and Mark Walter graphic
Photo by Chris Brunskill/Fantasista/Getty Images
Bill Simmons weighs in on Mark Walter’s current situation
For those who aren’t aware, Bill Simmons is probably the equivalent of Piers Morgan in the United States, known for his strong comments on the NBA.
And he’s been talking about the Walter situation after selling the LA Lakers. But he reckons that this is just the start for Walter, who is on course to potentially serve jail time for his actions.
He said: “It’s starting to seem like he might actually go to jail. He’s already shed himself of the Lakers, he’s selling his Chelsea stake reportedly right now, which was worth like 12.5%. And my guess is the Dodgers are going to be next.”
Mark Walter is staring down a massive $7.6 billion (£5.6 billion) liquidity crunch over a 90-day window. He owes $1.1 billion (£811 million) in about six weeks for an equity commitment to buy Clear Channel Outdoor alongside Abu Dhabi’s Mubadala Capital, followed by an additional $6.5 billion (£4.8 billion) due to an insurance regulator by December 31.